Brazil: WTO rules against U.S. subsidies

Brazil's cotton industry gained a very important victory when a World Trade Organization (WTO) panel ruled against “illegal” U.S. farm subsidies. According to the WTO’s verdict, insufficiently reformed its cotton subsidies, thus affecting world prices and hurting farmers worldwide.

Brazil’s Foreign Ministry expressed their satisfaction with the WTO’s decision:

"The final ruling confirmed Brazil's view that the U.S. measures were insufficient to comply with the panel's original decision," Brazil's foreign ministry said in a statement.

"The full implementation of the (panel's) recommendations is a fundamental prerequisite for the credibility of the multilateral trade system," it added.

Despite the victory, Brazil's chief farm lobby urged the government to make concessions in order to overcome the impasse between developing and developed countries over free trade. Yet as we noted last week it may be too late to overcome trade differences.

Sources- AFP, BBC News, Reuters, Reuters India, The Latin Americanist

Image- ABC News Online

Brazil: Strong reply to U.S. critique on global trade

The U.S. is acting “unfair, unreasonable and irrational” in its demands during the Doha Round of free trade negotiations, declared Brazilian Foreign Ministry Undersecretary Roberto Azevedo.

The U.S. is trying to force Brazil into taking a larger role in discussions and convince lesser developed countries (LDCs) to make concessions. Yet Azevedo accused the U.S. and other advanced industrialized nations (AINs) of being uncooperative with LDCs:

“The U.S., the EU, the other developed countries are picking and choosing the provisions of the agriculture text they can live with. On the other hand, they are asking the developing countries to take the (industry) text as a 'take it or leave it' business which is frankly unfair, unreasonable, and irrational…

I can imagine that what they are essentially trying to do is put the blame on the shoulders of others if the round doesn't go forward.”

Brazil is not alone in its criticism of AINs like the U.S. and E.U.; a group of developing countries including India, Argentina, and the African members of the World Trade Organization issued a report rejecting massive cuts in industrial goods tariffs.

Thus, the impasse that has hampered global free trade talks for years appears to continue with no end in sight.

Sources- International Herald Tribune, Reuters, MSNBC, The Latin Americanist

Image- ABC News Online

Trade impasse continues after G8 summit

Earlier this month, there was hope that the G8 summit would renew global trade negotiations between wealthy and underdeveloped states. Yet by the end of the summit last Friday no compromise was found and this has seemed to have caused a division in the Americas.

Despite Brazil representing undeveloped countries during the talks in Germany, a group of eight countries from Asia and the Americas will present a proposal that would call for finding a “middle ground” involving major concessions from rich and poor countries. The plan appears to agree with the viewpoint of most economic experts in that something is far better than nothing:

“‘The losses and missed gains associated with a failure or freezing of the (Doha round) far outweigh the costs of a less than perfect agreement,’ said the proposal of the eight WTO members. ‘The time has come for all WTO members to show the flexibility needed to conclude the negotiations by early 2008 at the latest.’”

The break from Brazil and India may represent a turnaround in trade talks since the Doha Round first started in 2001.

Image- Turkish Press

Sources- Christian Science monitor, Monsters & Critics, Forbes, Reuters UK, Wikipedia